9. National Science Foundation, Federal Funds for Research, Development, and Other Scientific Activities (1972), 3; Edwin Diamond, “That Moon Trip: Debate Sharpens,” The New York Times, July 28, 1963, 150; Harold M. Schmeck Jr., “Scientists Riding Wave of Future,” The New York Times, January 3, 1963, 20, 22. On Southern industrialization, see Bruce J. Schulman, From Cotton Belt to Sunbelt: Federal Policy, Economic Development, and the Transformation of the South, 1938–1980 (Durham, N.C.: Duke University Press, 1994).
10. “. . . And in the Meantime at LMSC,” Lockheed MSC Star (Sunnyvale, Calif.), July 12, 1974, 4, Box 3, FF “STC Historical Data,” Joseph D. Cusick Papers, SU; Leif Erickson, “B58’s Electronic Shield Guards Against Missiles,” The Washington Post, January 25, 1958, C11.
11. “Discoverer XIII Life Cycle,” c. 1961, 59–60, Box 3, FF “STC Historical Data,” Joseph D. Cusick Papers, SU; Walter J. Boyne, Beyond the Horizons: The Lockheed Story (New York: Thomas Dunne / St. Martin’s Press, 1998), 275.
12. Terman added to the momentum by aggressively recruiting star professors. By 1963, Stanford had five Nobel laureates on its faculty. The University of California at Berkeley had eleven. California edged out Massachusetts in having the most residents who were members of the august National Academy of Sciences. And once these scientists got to the sunshine, they tended to stay. See Rebecca S. Lowen, Creating the Cold War University: The Transformation of Stanford (Berkeley: University of California Press, 1997), 180–81; Schmeck, “Scientists Riding Wave of Future.”
13. Stanford University Bulletin, May 15, 1958, FF “Palo Alto History,” SC 486, 90-052, SU.
14. “Attempts to Stir Up Union Trouble on San Francisco Visit: Touring Premier Picks Up a Cap on Surprise Visit to Union Hall,” Los Angeles Times, September 22, 1959, 1; David W. Kean, IBM San Jose: A Quarter Century of Innovation (New York: IBM, 1977), 59. Also see Harry McCracken, “Khrushchev Visits IBM: A Strange Tale of Silicon Valley History,” Fast Company, October 31, 2014, https://www.fastcompany.com/3037598/khrushchev-visits-ibm-a-strange-tale-of-silicon-valley-history, archived at https://perma.cc/X96L-UZAK.
15. Lawrence E. Davies, “De Gaulle Hailed by San Francisco,” The New York Times, April 28, 1960, 2; John Markoff, correspondence with the author, September 21, 2018; audience conversation with the author, Stanford Historical Society, Stanford, Calif., January 22, 2004. Waverly Street, already famous for the HP garage, later became known for the tech billionaires who lived there: Google’s Larry Page would one day live directly across from the home of the teenage Napoleon; Steve Jobs and his family were down the road. Palo Alto was, and is, a small town.
16. Margaret O’Mara, “Silicon Dreams: States, Markets, and the Transnational High-Tech Suburb,” in Making Cities Global: The Transnational Turn in Urban History, ed. A. K. Sandoval-Strausz and Nancy H. Kwak (Philadelphia: University of Pennsylvania Press, 2017); Stuart W. Leslie and Robert H. Kargon, “Selling Silicon Valley: Frederick Terman’s Model for Regional Advantage,” Business History Review 70, no. 4 (Winter 1996): 435–72.
17. Leslie Berlin, The Man Behind the Microchip: Robert Noyce and the Invention of Silicon Valley (Oxford, U.K.: Oxford University Press, 2005), 130.
18. Robert N. Noyce, “Semiconductor Device-and-Lead Structure,” U. S. Patent 2981877 (filed July 30, 1959; issued April 25, 1961); Berlin, The Man Behind the Microchip, 108–10, 138–40; Jonathan Weber, “Chip Industry’s Leaders Begin Bowing Out,” The Los Angeles Times, February 4, 1991, D1.
19. Charles Elkind, “Riding the High-Tech Boom: The American Electronics Association Story, 1945–1990,” unpublished manuscript, c. 1991, MISC 333, FF 1, SU, 19.
20. “Johnson and McNamara Letters on Defense Costs,” The New York Times, December 2, 1963, 16; Ronald J. Ostrow, “Defense Cost-Cutting Procedures Outlined,” The Los Angeles Times, January 31, 1963, B7.
21. Important discussion of the many changes to the contracting system and the shakeup they precipitated is in Christophe Lécuyer, Making Silicon Valley: Innovation and the Growth of High Tech (Cambridge, Mass.: The MIT Press, 2007), 171–75. Also see Jonathan D. Kowalski, “Industry Location Shift Through Technological Change—A Study of the U.S. Semiconductor Industry (1947–1987),” PhD dissertation, Carnegie Mellon University, 2012.
22. Gordon E. Moore, “Cramming more components onto integrated circuits,” Electronics 38, no. 8 (April 1965): 114–17. For discussion of this technological transition, see Paul E. Ceruzzi, A History of Modern Computing (Cambridge, Mass.: MIT, 1998).
23. Martin Campbell-Kelly, William Aspray, Nathan Ensmenger, and Jeffrey R. Yost, Computer: A History of the Information Machine (3rd ed.; Boulder, Colo.: Westview Press, 2013), 221–23.
CHAPTER 4: NETWORKED
1. Digital Equipment Corporation: Nineteen Fifty-Seven to the Present (Maynard, Mass.: Digital, 1978); AnnaLee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Mass.: Harvard University Press, 1994), 59–82; Gene Bylinsky, The Innovation Millionaires: How they Succeed (New York: Charles Scribner’s Sons, 1976).
2. Quoted in “About Ken Olsen,” Gordon College, Ken Olsen Science Center, https://www.gordon.edu/kenolsen, archived at https://perma.cc/RF3V-U8MJ; Martin Campbell-Kelly, William Aspray, Nathan Ensmenger, and Jeffrey R. Yost, Computer: A History of the Information Machine (3rd ed.; Boulder, Colo.: Westview Press, 2013), 216–19.
3. John McCarthy, “What is Artificial Intelligence?,” Computer Science Department, Stanford University, revised November 12, 2007; David Walden, “50th Anniversary of MIT’s Compatible Time-Sharing System,” IEEE Annals of the History of Computing 33, no. 4 (October–December 2011): 84–85; Daniel Crevier, AI: The Tumultuous History of the Search for Artificial Intelligence (New York: Basic Books, 1993); John Markoff, Machines of Loving Grace: The Quest for Common Ground Between Humans and Robots (New York: HarperCollins, 2015).
4. McCarthy, “Memorandum to P. M. Morse Proposing Time-Sharing,” January 1, 1959, collection of Professor John McCarthy, http://jmc.stanford.edu/computing-science/timesharing-memo.html, archived at https://perma.cc/QU7M-7CM4.
5. Kent C. Redmond and Thomas M. Smith, From Whirlwind to MITRE: The R&D Story of the SAGE Air Defense Computer (Cambridge, Mass.: The MIT Press, 2000).
6. J. C. R. Licklider, “Man-Computer Symbiosis,” IRE Transactions on Human Factors in Electronics HFE-1 (March 1960), 4–11.
7. William F. Miller, interview with the author, February 27, 2015, Stanford, Calif.; Miller, Interview by Patricia L. Devaney, August 9, 2009, Stanford Oral History Program, SU.
8. Quoted in Martin Campbell-Kelly, William Aspray, Nathan Ensmenger, and Jeffrey R. Yost, Computer: A History of the Information Machine (3rd ed., 2013), 211. Also see Martin Greenberger, Computers, Communications, and the Public Interest (Baltimore: Johns Hopkins University Press, 1971); Manley R. Irwin, “The Computer Utility: Competition or Regulation?” Yale Law Journal 76, no. 7 (1967): 1299–1320; Fred Gruenberger, ed., Computers and Communications—Toward a Computer Utility (Englewood Cliffs, N.J.: Prentice-Hall, 1967).
9. The founder of SDS, Max Palevsky, later sold his company to Xerox in a $100 million deal and became a major Democratic campaign donor, shoveling money and unsolicited policy advice toward liberals like George McGovern and Los Angeles Mayor Tom Bradley (Bill Boyarsky, “Palevsky Dives into New Political Waters,” The Los Angeles Times, February 4, 1973, F1).
10. Ann Hardy, interviews with the author, April 20, 2015, and September 19, 2017; “Tymshare Reunion,” Collection Item #102721147, CHM. For statistics, see Martin Campbell-Kelly and Daniel D. Garcia-Swartz, “Economic Perspectives on the History of the Computer Time-Sharing Industry, 1965–1985,” IEEE Annals of the History of Computing 30, no. 1 (January–March 2008): 16–36.
11. Ann Hardy, phone conversation with the author, August 28, 2018.
12. LaRoy Tymes, interview by George A. Michael, July 1, 2006, in “Sto
ries of the Development of Large Scale Scientific Computing at Lawrence Livermore National Laboratory,” http://www.computer-history.info/Page1.dir/pages/Tymes.html, archived at https://perma.cc/6KFZ-UMA7.
13. LaRoy Tymes, oral history interviews by Luanne Johnson and Ann Hardy, June 11, 2004, Cameron Park, Calif., CHM. Also see Nathan Gregory, The Tym Before: The Untold Origins of Cloud Computing (Independently published, 2018).
14. “Tymshare Offer Sold Out,” The Wall Street Journal, September 25, 1970, p. 18; Hardy, interview with the author, April 20, 2015, Stanford, Calif.
15. Andrew Pollack, “The Man Who Beat AT&T,” The New York Times, July 14, 1982, D1; Wayne E. Green, “Tiny Firm Faces AT&T, General Telephone In Battle Over Telephone-Radio Connector,” The Wall Street Journal, March 1, 1968, 30; Peter Temin with Louis Galambos, The Fall of the Bell System: A Study in Prices and Politics (Cambridge, U.K.: Cambridge University Press, 1987); Katherine Maxfield, Starting Up Silicon Valley: How ROLM became a Cultural Icon and Fortune 500 Company (Austin, Tex.: Emerald Book Co., 2014). The precedent at work in the Carterfone decision was the 1956 Hush-A-Phone case, which ruled in support of a company that manufactured popular telephone receiver attachments that kept a user from being overheard. The Hush-A-Phone was a nonmechanical attachment to a telephone handset, however, not a self-powered electronic device like the Carterfone. See Nicholas Johnson, “Carterfone: My Story,” Santa Clara Computer & High Technology Law Journal vol. 25, no. 3 (2008): 677–700. On the AT&T monopsony and more, see Tim Wu, The Master Switch: The Rise and Fall of Information Empires (New York: Alfred A. Knopf, 2010).
16. Herbert F. Mitchell, Unsolicited Proposal for Technical Assistance to NASA Goddard Space Flight Center, No. 5656-926 (Silver Spring, MD: Bunker-Ramo Eastern Technical Center, 1965).
17. “Bunker-Ramo Formed to do System Work,” The Washington Post, January 24, 1964, B6.
18. Hardy, phone conversation with the author, August 28, 2018. For a historical overview of this regulatory shift see Gerald W. Brock, Telecommunication Policy for the Information Age: From Monopoly to Competition (Cambridge, Mass.: Harvard University Press, 1994); for discussion of the FCC policymaking process see Michael J. Zarkin, “Telecommunications Policy Learning: The Case of the FCC’s Computer Inquiries,” Telecommunications Policy 27, nos. 3–4 (April–May 2003): 283–99. Prodigy originally was named Trintex (1984–88).
19. By the time the ARPANET became the commercial Internet in the early 1990s, the OTC broker-traders had indeed smartened up their backroom image. But they’d kept barriers to entry friendly and low, making their board accessible to young firms with little equity. Their market now went by a new name: the NASDAQ. Computer hardware and software firms made up more than half of its listings. See Mark Ingebretsen, NASDAQ: A History of the Market That Changed the World (Roseville, Calif.: Forum / Random House, 2002).
20. On Licklider, ARPA, and Bob Taylor’s work to build the ARPANET, see Leslie Berlin, Troublemakers: Silicon Valley’s Coming of Age (New York: Simon & Schuster, 2017), 6–31.
21. Bolt Beranek and Newman Inc., “A History of the ARPANET: The First Decade” (Arlington, Va.: Defense Advanced Research Projects Agency, April 1981).
CHAPTER 5: THE MONEY MEN
1. AnnaLee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Mass.: Harvard University Press, 1994), 12. Saxenian’s study is a notable part of a large body of work in economic geography that investigates the location of high-tech industrial districts, following on the concept developed by Alfred Marshall in Principles of Economics in 1890. See, for example, Timothy Bresnahan and Alfonso Gambardella, eds., Building High-tech Clusters: Silicon Valley and Beyond (Cambridge, U.K.: Cambridge University Press, 2004); Maryann P. Feldman, The Geography of Innovation (Dordrecht, Netherlands: Kluwer Academic, 1994); Ann Markusen, Peter Hall, Scott Campbell, and Sabina Deitrick, The Rise of the Gunbelt: The Military Remapping of Industrial America (Oxford, U.K.: Oxford University Press, 1991); Edward J. Malecki, Technology and Economic Development: The Dynamics of Local, Regional, and National Change (New York: Longman Scientific & Technical, 1991).
2. Marty Tenenbaum, interview with the author, February 9, 2018, by phone; Stewart Greenfield, interview with the author, May 19, 2015, by phone.
3. Bill Draper, interview with the author, June 23, 2015, Palo Alto, Calif.
4. William H. Draper III, interview by John Hollar, Computer History Museum, April 14, 2011, Mountain View, Calif., 5. On Doriot, see Gene Bylinsky, The Innovation Millionaires: How They Succeed (New York: Charles Scribner’s Sons, 1976), 3–23; Christina Pazzanese, “The Talented Georges Doriot,” The Harvard Gazette, February 24, 2015, archived at https://perma.cc/U7JL-KD2T; Spencer E. Ante, Creative Capital: Georges Doriot and the Birth of Venture Capital (Cambridge, Mass.: Harvard Business School Publishing, 2008).
5. Bylinsky, The Innovation Millionaires, 9.
6. Ernest A. Schonberger, “Inside the Market,” The Los Angeles Times, November 2, 1969, L1.
7. Arthur Rock, interviews by Sally Smith Hughes, 2008 and 2009, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” Regional Oral History Office, The Bancroft Library, University of California, Berkeley, California, 20–21. Also see Martin Kenney and Richard Florida, “Venture Capital in Silicon Valley: Fueling New Firm Formation,” in Martin Kenney, ed., Understanding Silicon Valley: The Anatomy of an Entrepreneurial Region (Stanford, Calif.: Stanford University Press, 2000), 98–123.
8. Leslie Berlin, “The First Venture Capital Firm in Silicon Valley: Draper, Gaither & Anderson,” in Making the American Century: Essays on the Political Culture of Twentieth Century America, ed. Bruce J. Schulman (Oxford, U.K.: Oxford University Press, 2014), 155–70; William H. Draper III, interview by John Hollar, 9.
9. Dwight D. Eisenhower, “Letter to Jere Cooper, Chairman, House Committee on Ways and Means, Regarding Small Business,” July 15, 1957, posted by Gerhard Peters and John T. Woolley, The American Presidency Project, https://www.presidency.ucsb.edu/node/233357; Robert Caro, Master of the Senate, vol. 3, The Years of Lyndon Johnson (New York: Alfred A. Knopf, 2002).
10. John W. Wilson, The New Venturers: Inside the High-Stakes World of Venture Capital (Reading, Mass.: Addison-Wesley, 1985), 21–24.
11. William John Martin Jr. and Ralph J. Moore Jr., “The Small Business Investment Act of 1958,” California Law Review 47, no. 1 (March 1959): 144–70; Richard L. VanderVeld, “Small Business Symposium Set,” The Los Angeles Times, September 11, 1960, D13.
12. Pitch Johnson, interview with the author, June 23, 2015, Palo Alto, Calif.
13. Reid Dennis, interview with the author, May 26, 2015, Palo Alto, Calif.; William H. Draper III, interview by John Hollar, 5; Wilson, The New Venturers, 49.
14. Franklin P. Johnson testimony, “Climate for Entrepreneurship and Innovation in the United States,” Hearings before the Joint Economic Committee, Congress of the United States, Ninety-eighth Congress, Second Session, Part 2, August 27 and 28, 1984—A Silicon Valley Perspective, 167; U.S. Census, “Educational Attainment, by Race and Hispanic Origin: 1960 to 1998,” Statistical Abstract of the United States (Washington, D.C.: United States Census Bureau, 1999), 160; William D. Bradford, “Business, Diversity, and Education,” in James A. Banks, ed., Encyclopedia of Diversity in Education (Los Angeles: Sage Publications, 2012).
15. San Francisco’s University Club, one of The Group’s meeting places, did not open its dining room to women until 1988. For more on the “disappearance” of women from tech, see Nathan Ensmenger, The Computer Boys Take Over: Computers, Programmers, and the Politics of Technical Expertise (Cambridge, Mass.: The MIT Press, 2010), and Marie Hicks, Programmed Inequality: How Britain Discarded its Women Technologists and Lost its Edge in Computing (MIT, 2017).
16. John Doerr, in conversation with Michael Moritz, National Venture Capital Association Annual Meeting, San
ta Clara, Calif., May 2008, quoted in Scott Austin, “Doerr and Moritz Stir VCs in One-on-One Showdown,” The Wall Street Journal, May 8, 2008, http://www.wsj.com/articles/SB121025688414577219, archived at https://perma.cc/FM7F-CUSS [inactive].
17. Wilson, The New Venturers, 31–34; Maochun Yu, OSS in China: Prelude to Cold War (Annapolis, Md.: Naval Institute Press, 1996).
18. Rock interview, “Early Bay Area Venture Capitalists”; Wilson, The New Venturers, 31–40.
19. Bylinsky, The Innovation Millionaires.
20. Burton J. McMurtry, interview with the author, January 15, 2015, Palo Alto, Calif.
21. McMurtry, interview with the author, October 2, 2017, by phone.
22. McMurtry, “Evolution of High Technology Entrepreneurship and Venture Capital in Silicon Valley,” Presentation to the Houston Philosophical Society, April 21, 2005. Manuscript in possession of the author.
23. “John Wilson,” in Carolyn Caddes, Portraits of Success: Impressions of Silicon Valley Pioneers (Wellsboro, Penn.: Tioga Publishing, 1986); “Law firm founder John Arnot Wilson dies at 83,” The Almanac (Menlo Park, Calif.), December 22, 1999, https://www.almanacnews.com/morgue/1999/1999_12_22.oawilson.html, archived at https://perma.cc/UQM3-YTM9; Paul “Pete” McCloskey and Helen McCloskey, interview with the author, February 18, 2016, Rumsey, Calif.
24. Patrick McNulty, “They Shrugged When Pete McCloskey Challenged the President,” The Los Angeles Times, May 23, 1971, O24; Pete McCloskey, interview with the author.
25. Lawrence R. Sonsini, oral history interview by Sally Smith Hughes, 2011, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” Regional Oral History Office, The Bancroft Library, University of California, Berkeley, 2011; Mark C. Suchman, “Dealmakers and Counselors: Law Firms as Intermediaries in the Development of Silicon Valley,” in Kenney, ed., Understanding Silicon Valley, 71–97.
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